Buyer's Market vs Seller's Market

If you’ve been thinking about selling your home, buying a home, or you just loosely follow the health of the real estate market in your area, chances are you have seen quotes or heard people talking about a “seller’s market” or a “buyer’s market.” The current state of the real estate market can change from year to year or even vary based on one person’s perspective at any given time.

The basic idea is that a seller’s market is better for home sellers and a buyer’s market is better for home buyers. Real estate markets are complicated, and the whole idea of the market being good for one group and bad for another at any given time is a bit misleading.

It’s also important to recognize that many people entering the real estate market are simultaneously buyers and sellers. You may be listing your home today and touring homes as a prospective buy tomorrow.

The difference in prices or interest rates is often a matter of degrees and typically viewed through a short-term lens. Many homebuyers balk at a seven percent interest rate on a 30-year fixed-rate mortgage today because they’re comparing it to the four percent rate of just a few years ago. They conveniently forget the ‘70s and ‘80s where borrowers were saddled with nine or 12 percent rates. Interest rates change, and refinancing to a lower rate in the future is always an option.

Simply put, it’s not always a great idea to let a talking head or alleged expert dictate your major life decisions. You should determine when the best time to buy or sell is based on your needs and life situation.

What Is a Seller’s Market?

Traditionally, a seller's market is characterized by a shortage of homes for sale relative to buyer demand. In such a market, sellers have the upper hand. Some hallmarks of a seller’s market include:

• Higher Home Prices: Due to increased demand, homes often sell at a higher price point.
• Quick Sales: Homes sell quickly, with sellers often receiving multiple offers.
• Less Negotiation: Sellers are less likely to make concessions as buyers compete to secure a property.

What is a Buyer's Market?

Conversely, a buyer's market is defined by a surplus of homes for sale and fewer buyers. This puts buyers in a position of power:

• Lower Home Prices: Buyers have more room to negotiate on price due to the greater supply of homes.
• More Choices: Buyers can afford to be choosy and take their time making decisions.
• Seller Concessions: Sellers may offer incentives to attract buyers, such as assistance with closing costs or allowances for home improvements.

Selling in a Buyer's Market

While a seller's market naturally seems more advantageous for listing a home, the best time to sell is ultimately when it fits your personal and financial circumstances. Even in a buyer's market, there are strategies to maximize your home's appeal and sale price:

• Effective Pricing: A well-priced home can attract attention and even spark bidding wars, no matter the market.
• Home Staging and Improvements: Homes that stand out in terms of presentation and condition can defy market trends.
• Strategic Marketing: Targeted, professional marketing can reach the right buyers quickly and effectively.

The 72SOLD Advantage

Choosing the right real estate partner is key in any market. With 72SOLD, you gain a strategic advantage:

• Market Insight: Our deep understanding of market conditions can inform the timing and pricing of your listing.
• Marketing Expertise: Our targeted approach ensures your home makes a strong impression on potential buyers.
• Negotiation Skills: We negotiate diligently on your behalf to secure the best possible sale price.

Are We in a Buyer’s Market or a Seller’s Market?

Whether it’s a seller's market or a buyer's market, the decision to sell should align with your lifestyle needs and financial goals. While market conditions can affect the sales approach, the constant factor should be choosing a trusted real estate professional who can navigate these conditions.

72SOLD has a proven track record of achieving optimal outcomes for sellers in various market conditions. We tailor our strategy to highlight the strengths of your property, employing expertise that transcends market trends to maximize your home's sale price.



We encourage you to get your price today or to learn more about our process.